American investment and commercial banking giant JPMorgan Chase is looking forward to expanding the use of its leading blockchain technology, IIN (Interbank Information Network), to make payments in the banking industry easier and better. At the same time, it is also roping in various fintech firms to help with the platform’s functionality.
IIN New Features
JPMorgan is planning to include new features in IIN to minimize transaction errors. IIN already helps in solving compliance issues. It was primarily built to share information on a common ledger. It is being used by 75 major banks around the world, which joined last year.
This new feature has already been included by more than 220 banks on the global level. JPMorgan believes that with the help of this introduction, banks can better perform their international payment businesses due to an increase in the digital transactions by customers on TransferWise, Ripple, and Revolut. John Hunter, the head of JPMorgan’s global clearing, says IIN’s development is working towards expansion now. He also added that though it was introduced with the aim of sorting out sanctions, now they are focusing more on settlement.
Hunter explained that JPMorgan has included a feature that will assure accurate and real-time payments. It will eradicate payment rejection problems caused due to typos of the account number, sort code, and other such issues. He explained that the STP (straight through processing) rates of banks currently work under 80%–90% of capacity, with the rest 5% to 20% lacking thereof. This problem will also be solved by the introduction of IIN.
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Execution By Q3
According to Hunter, this feature will be in force by third quarter 2019 and will be possible for both payments, within the country as well as outside it. This introduction of the testing environment will provide users with safe messaging, file transfer, and data modeling. Hunter feels it will remove problems like tooling, data, and ecosystem. And with the help of developers, all this can be possible.
Apart from IIN, JPMorgan is also establishing a sandbox that will be used by the fintechs to put applications into use.
Under the current scenario, IIN services are free but will have a fee attached eventually.
Featured image: DepositPhotos @ Fotofabrika
